PCIT Vs K. Umesh Shetty (Karnataka High Court)
Summary: The Karnataka High Court dismissed the Revenue’s appeal under Section 260A of the Income-tax Act, 1961, concerning penalty imposed under Section 271D for alleged violation of Section 269SS for Assessment Year 2012-13.
The assessee, a businessman engaged inter alia in digital printing, had filed his return for AY 2012-13. The return was selected for scrutiny under Section 143(3), resulting in an assessment order dated 26.02.2015 in which two additions were made. In the light of that assessment order, the Income Tax Officer made a reference to the Additional Commissioner of Income Tax by letter dated 16.11.2016 for imposition of penalty under Section 271D alleging violation of Section 269SS. The Additional Commissioner subsequently issued a notice dated 10.11.2017 calling upon the assessee to show cause why penalty under Section 271D should not be imposed. The assessee objected principally on the ground of delay and laches. His objections were rejected and a penalty order was passed on 22.02.2018.
The Commissioner of Income Tax (Appeals) rejected the assessee’s appeal on 10.07.2018. The assessee thereafter approached the Income Tax Appellate Tribunal, which accepted the limitation contention and granted relief by order dated 20.09.2019. The Revenue challenged that order before the High Court.
